INTERNAL AUDITING EFFICIENCY AS A TOOL FOR IMPROVING COMPANY’S PERFORMANCE (A CASE STUDY OF EMENITE LIMITED LAGOS)
This research examine INTERNAL AUDITING AS A TOOL FOR
IMPROVING COMPANIES PERFROMANCE, with reference to Emenite limited, Lagos.
This research adopts descriptive research design. A
well-structured questionnaire was used in collected data with simple random
sampling technique. Forty (40) staff of the study were sampled and
questionnaires administered to them. Twenty Eight (28) questionnaires were
returned and Twelve (12) were not returned.
data collected were analyzed with basic descriptive statistics such as
frequency and simple percentages. The core findings from the results obtained
show that the internal auditing efficiency in achieving the company’s
performance are effective. It also shows that the internal auditing tool in
determining the ills and weak points of the company’s performance is efficient.
It was recommended that there should be relative independence of the internal
1.1 Background of the Study
1.2 Statement of Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Scope of the Study
1.6 Research Questions
1.7 Research Hypothesis
1.8 Definitions of Terms
2.0 Reviews of Related Literature
2.1 Accounting and Business Organization
2.2 Accounting Principles and Theories
Methods and Bases
Concepts and Convention
2.5 Historical Background of Auditing
2.6 Historical Background of Emenite Nig. Ltd
2.7 Principles of
Functions and Interval Control System
2.9 Internal Auditors
Roles and Scope of Work
Relationship between Internal and External Auditor
of Internal Control in an
2.12 Collection and
Evaluation of Evidence
Accounting Entries for the Period Inventory System
2.14 The Companies
2.15 The Level of
2.16 Auditing In
Regulation and Regulatory Framework of an Audit
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Area of Study
3.1 Research Design
3.2 Sampling Size
and Sampling Techniques
3.3 Data Collection
3.5 Validation of
of Variable Population
3.7 Data Analysis
4.1 Data Analysis
4.2 Data Presentation
SUMMARY, FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of the
APPENDIX / QUESTIONNAIRE
1.1 BACKGROUND OF THE STUDY
performance is very important if such a company wants to achieve the purpose of
its establishment without positive impact of any organization, it means that
the way of achieving the objectives when the business has commenced will be a
difficult situation for the organization.
obvious that the performance of companies is not up to expectations which leads
the researcher to know the impacts of the internal auditing efficiency as a
tool for improving company’s performances.
companies have been encountering some problems like fraud, misappropriation of
funds and properties, lack of effective management and others that made people
to be asking whether auditing plays any significant roles towards ensuring
efficiency and judicious use of funds set aside for various purpose.
for the proper efficient accountability, it is obvious that the auditor and
accountant will manifest their principles to be able to arrive at what is
expected of them in order to be convinced that the financial position of the
organization as presented, show a clear and fair view of the organization.
because of biased nature of the organization as a result of poor investigation
of the organization position, past rulers have pledged to introduce a more
responsible system of government with accountability but their subsequent
conduct has shown that they have little or no understanding definition and
application of efficiency in the improvement of company’s performances.
which is regarded as one of the recently established professions turn out of
the complexity of modern business world.
It became relevant so as to discourage people from erring and to expose
those that gave wrong account of how they managed the funds and properties
under their custody. The account or
report is usually done by means of financial statement. In order to verify the time and fair view of
this report, an independent person is needed to audit the account such as the
internal auditor and the service of a qualified accountant for proper
accountability and efficiency in the organization financial position and
In a related development it has been
believed that efficiency in discovering the management inefficiency has been
the root cause of many companies poor performance both companies in private and
public limited sector in Nigeria. Improvement can only follow when what is
honestly followed in been recognized and how such wrong could be remedied. In
view of this point effort will be made to painstakingly highlight the
improvement however taking auditing efficiency and the service of a qualified
accountant in respect of private companies and public enterprises to improve
the company’s performance. The question
that is normally asked is that in spite of all those provision and safeguard,
why is it that one still experience the alarming rate of fraud and
misappropriation of funds, companies crisis, excess expenditure that are usually
not compatible with the real budget by those entrusted to safeguard. This is why a great emphasis has to be laid
on proper internal auditing efficiency as a tool for proving companies
performance using Emene Flour Mill Limited Lagos as a case study.
STATEMENT OF PROBLEM
A company may be classified under
small medium or large depending on the size, feature of number share authorized
calls issue and fully paid etc. many companies face the problem of internal
auditing efficiency such as non-compliance with the accounting standard and
non- disclosure of some fact which will guide the auditor either the external
or internal to form an opinion on the true and fair free of the organization
record. Other cooperate crime may pose a problem in the auditing efficiency and
this cooperate crime may be a serious issue. There is many more looting in all
the state in government offices, companies etc. the research work will attempt
to highlight on these problem areas that basically undermine auditing
efficiency in a company and give
OF THE STUDY
objectives of this research work are under-listed;
i. To examine the extent to which the
management has appraised the internal auditing efficiency to improve company’s
ii. To evaluate the internal auditing
efficiency that has been the tools in determining the ills and weak points in
the company’s performance.
iii. To investigate the accounting and auditing
tools in improving the efficiency of the company’s performance.
iv. To highlight the possible solution to
companies inefficiency or performances.
v. To analyze the impact of internal auditing
efficiency towards the accomplishment of the company’s performance.
OF THE STUDY
I am highly optimistic that the
completion of this research work will benefit most people or group of people,
among them are:
1. Students and staff in the tertiary
institution: This research work will
assist both the student in the future and even the staff in the tertiary
institution will find this research work more rewarding and educative.
2. The Public: The general publics who can cross check this
research work, after proper checking will find this research work more
3. Professional Accountant: The technology gamed from this research work
will assist the professional accountant whose works are so valuable.
4. Companies: Efficiency in auditing serves as a life wire
in any company. Therefore, most company
that are having problem pertaining to their poor performance will find this
research work more efficient and valuable.
1.5 SCOPE AND LIMITATION OF STUDY
The scope of this study “Internal
auditing efficiency as a tool for improving the company’s performance” is using
the Emenite Limited Lagos as the case study.
The research encountered some difficulties ranging from time constraints
poor response, financial constraint etc.
Financial constraint: the researcher having financial
involvement and other problems faced a lot of financial predicament with the
merger of financial resources.
Poor response: most of the research work was characterized
with poor response from various respondent and having taking into
consideration some of the misguided
beliefs and expression by many respondent, they are usually faced with problems
; Fear of been exposed and retrenched
or dismissed for revealing official information.
Time constraint: the time factor imitate against the
progress of the project. The time for the work done, compilation, completion
and submission for assessment irrespective of the fact and other academic
engagement were too small.
Q1; what is the extent to which the management
has appraised internal auditing efficiency to improve company’s performance?
Q2; How does the internal auditing efficiency
tools been use to determine the ills and weak points of the company’s
Q3; what is the accounting tools used to improve
the efficiency of the company’s performance?
Q4; what is the auditing control tools used to
improve the efficiency of the organization performance?
Q5; what are the possible solutions to the
company inefficiency or performance?
What are the impacts of internal auditing efficiency towards the
achievement of the company’s performance?
1.7 RESEARCH HYPOTHESIS
internal auditing tool in determining the ills and weak point of the company
performance is not efficient?
internal auditing tools in examine the ills and weak point of the company
performance is efficient.
impact of internal auditing efficiency in achieving the company’s performance
is not effective.
impacts of the internal auditing efficiency in achieving the company’s
performance are effective.